AUSTRALIA - Mercer Human Resources Consulting in Australia hasshifted its fund of managers (FoM) business into a separate division called Mercer Global Investments, a move next set to be rolled out internationally.
“The decision to run this business separately from investment consulting recognises the differences between the two activities and will ensure both are managed effectively,” said Mercer in a statement.
“The separation will also assist with management of potential conflicts of interest.”
The Australian division of Mercer Global Investments, which will be responsible for implemented consulting and multimanager investmentproducts, is to be headed by Gary Burke.
Burke joins Mercer with over 16 years’ experience in investment management and research. He was formerly CIO at Zurich Scudder and Deutsche Funds Management.
The Mercer Super Trust, which is a full super outsourcing solution, providing account keeping, insurance, member education and actuarialservices, is a client of Mercer Global Investments, from which it purchases the investment options.
The Australian move is in line with Mercer’s global move to roll out a fund of managers service internationally, under the direction of Brian Storms who joined Mercer in August last year.
“Under Brian Storms Mercer will be progressively rolling out a fund of managers business around the world,” added Tony Cole, head of Mercer IC in Australia.
“We already have such a business in Australia. What we have done now is more clearly separate it from our investment consulting business and apply the same structure and business name as is to be used globally. Asimilar arrangement has also been implemented in the US.”
Tim Gardener, global head of Mercer Investment Consulting, said: “The aim is to develop this business in other countries over time. The multimanager business exists in some form in the US through Mercer DIS and this will be folded into Mercer Global Investments.”
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.